Lloyd’s has invested in BreachBits, a cyber risk technology company founded by former US military cyber warfare professionals.
This represents Lloyd’s third investment in a company emerging from its Lloyd’s Lab accelerator, following BreachBits’ participation in the 13th cohort from September to December 2024.
During the program, BreachBits tested two products built for the Lloyd’s market: the Cyber Questionnaire Validator and Cyber Pre-Claim Intervention.
These tools aim to reduce underwriting time, support risk selection, and improve outcomes for carriers and brokers.
Pilot results showed that the Validator shortened underwriting processes and improved risk evaluation, while the Pre-Claim Intervention helped insurers manage exposures before incidents occur, with potential to lower both claim frequency and severity.
The company’s products rely on BreachRisk AI, which has completed over 50,000 hacker assessments since 2020.
This engine identifies and evaluates over 95% of attacker methods outlined in the Verizon 2024 Data Breach Investigations Report, offering insurers early insight into potential vulnerabilities.
BreachBits’ approach supports rising demand in the cyber insurance market, where premiums may grow from over $15bn to more than $55bn.
The technology addresses current pressure on insurers to issue policies quickly and manage risk more effectively with automated processes.
Lloyd’s sees this investment as a way to improve service, deliver more value to policyholders, and support growth in the cyber sector.
Rosie Denée, Head of Innovation, Commercial Education and Engagement at Lloyd’s, stated that BreachBits’ tools provide insurers with critical visibility into client security conditions.
She added that their time in the Lab helped develop their offering into a solution that performed well in testing.
Their time in the Lloyd’s Lab helped refine their approach from concept to market-ready solution, demonstrating exceptional results during pilot testing. We’re proud to support their continued growth through this investment – strengthening data-driven cyber solutions that enable our market to underwrite with greater confidence and precision.
Rosie Denée, Head of Innovation, Commercial Education and Engagement at Lloyd’s
J. Foster Davis, BreachBits co-founder, said the company is committed to solving challenges in cyber insurance and risk management, especially in sensitive areas where false positives are unacceptable.
He welcomed the support from Lloyd’s and acknowledged the shared goal of improving global risk handling.
“We’re honoured by Lloyd’s investment and proud to help facilitate Lloyd’s mission of sharing risk to create a braver world. Our team is committed to addressing real-world challenges in cyber insurance and risk management – especially in complex situations and where false-positives cannot be tolerated,” J. Foster Davis said.
